At a recent meeting, the Elkader City Council approved moving forward with a $10,000 hotel study to review the local market and identify possible locations for a hotel within city limits.
The city has applied for a grant through the Iowa Rural Development Council’s Power of Connection program, which, if awarded, would cover $5,000 of the project cost.
The study will be completed by Hart Family Hotels and is expected to look at market demand, potential hotel use, possible sites and other factors that could affect whether a hotel project would be viable in Elkader.
The topic is not new for the city. A hotel has been discussed in Elkader for years, with prior studies completed before 2010 and again in 2021. At different times, the idea has been slowed by concerns over location, difficulty finding investors or developers and rising construction costs. Most recently, discussions stalled after the COVID-19 pandemic, when construction prices increased and made hotel development more difficult.
Mayor Pro Tem Bob Garms, who has previously expressed support for a hotel locally, said he believes the study would be money well spent.
“We had about 200-some bicycles down here this weekend, and if they did it overnight, they had to go somewhere else,” Garms said.
City Administrator Jennifer Cowsert said past studies have shown a need for lodging in Elkader, but the city has not yet found the right combination of location, investors and developers to move a project forward.
She said the lack of lodging has affected opportunities for events such as bus tours, professional meetings, weddings and other gatherings where visitors may need to stay overnight.
Council members acknowledged that identifying the right location will be an important part of the process, noting that different options come with trade-offs.
Council member Randy Henning raised questions about how location could impact demand, asking whether certain areas would be appealing to visitors.
“If there was a hotel built out there…would you stay there?” Henning asked.
Council member Tony Hauber said there may not be a perfect site, noting, “Every situation is going to have a trade-off. We’ve got to choose what we think are the best trade-offs.”
The council approved moving forward with the study, with the possibility of grant funding offsetting half the cost.
Council members also approved repairs to basement-level windows at the Elkader Opera House, where moisture has caused window sills to deteriorate and other frames to weaken. Council members favored replacing all affected windows at once to avoid additional costs later and approved moving forward with the project, with final material decisions to follow an in-person review and recommendation.
During the administrative staff update, Cowsert discussed a recent letter received from the city’s garbage provider, Hawkeye Sanitation, proposing a fuel surcharge of approximately $1,500 per month, or about $19,000 annually. Council members supported Cowsert’s response, stating the company must follow the terms of the contract, which require justification and council approval before implementing additional charges. The item is expected to return for further discussion at a future meeting.
Council members also briefly discussed enforcement of the city’s mowing ordinance in relation to “No Mow May,” including environmental considerations, appearance concerns, grass height limits and resident complaints. Council members shared mixed perspectives, and no formal action was taken.